FOR IMMEDIATE RELEASE
April 27, 2005
For further information contact:
Kevin M. McCloskey
Senior Vice President and Chief Operating Officer
Synergy Financial Group, Inc.
(800) 693-3838, extension 3292
Synergy Financial Group, Inc.
Announces First Quarter, 2005 Earnings
Cranford, New Jersey, April 27, 2005 - John S. Fiore, President and Chief
Executive Officer of Synergy Financial Group, Inc. (NASDAQ: SYNF) (the
"Company"), the holding company of Synergy Bank and Synergy Financial Services,
Inc., today announced net income for the three-month period ended March 31, 2005
of $1.1 million, or $0.10 per basic and diluted share. This represents an
increase of $115,000, or 11.4 percent, from $1.0 million, or $0.10 per basic and
diluted share, for the same three-month period last year.
Total assets reached $896.3 million on March 31, 2005, an increase of 4.1
percent, or $35.6 million, from $860.7 million on December 31, 2004. Net loans
increased 6.3 percent, or $35.2 million, to $596.9 million on March 31, 2005,
from $561.7 million on December 31, 2004. On March 31, 2005, total loans were
comprised of 22.0 percent in single-family real estate loans, 18.8 percent in
home equity loans, 27.8 percent in non-residential and multi-family mortgage
loans, 28.6 percent in consumer loans, 1.0 percent in construction loans and 1.8
percent in commercial and industrial loans.
On March 31, 2005, the allowance for loan and lease losses was $4.7 million,
compared to $4.4 million on December 31, 2004. The ratio of the allowance to
total loans was 0.78 percent during both periods. Non-performing assets to total
assets was 0.04 percent on March 31, 2005, compared to 0.03 percent on December
31, 2004.
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Deposits reached $566.9 million on March 31, 2005, an increase of $28.0 million,
or 5.2 percent, from the $538.9 million reported on December 31, 2004. Core
deposits, consisting of checking, savings, and money market accounts, increased
$7.1 million, or 2.5 percent, and represented 51.7 percent of total deposits on
March 31, 2005. During the same period, borrowings increased $8.2 million, or
3.8 percent, to $220.6 million on March 31, 2005.
Stockholders' equity totaled $102.8 million on March 31, 2005, a decrease of 1.2
percent, or $1.2 million, from $104.0 million on December 31, 2004. The decline
in equity is the result of the repurchase of shares to satisfy the Company's
restricted stock plans and the stock repurchase program announced on January 26,
2005, as well as the accumulated effect of an unrealized investment portfolio
market value adjustment, net of tax, offset by net income for the quarter.
Additionally, on March 22, 2005, the Company's Board of Directors declared a
quarterly cash dividend of $0.04 per common share, consistent with the prior
quarterly dividend. The dividend is payable on April 29, 2005 to stockholders of
record on April 15, 2005.
Net interest income increased $361,000, or 6.4 percent, for the three months
ended March 31, 2005, to $6.0 million, from $5.7 million for the same period
last year. Other income increased $276,000, or 40.2 percent, for the three
months ended March 31, 2005, to $965,000, from $688,000 for the same quarter one
year ago. This increase was primarily attributable to growth in commission
income generated by Synergy Financial Services, Inc.
Other expenses increased $411,000, or 9.5 percent, for the three months ended
March 31, 2005, to $4.7 million, from $4.3 million for the same period one year
ago. The increase was primarily attributable to wages and benefits associated
with the Company's growth strategy, as well as to equity-based employee
compensation plans.
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About Synergy Financial Group, Inc.
Synergy Financial Group, Inc. is the holding company for Synergy Bank and
Synergy Financial Services, Inc. The Company is a financial services company
that provides a diversified line of products and services to individuals and
small- to mid-size businesses. Synergy offers consumer banking, mortgage
lending, commercial banking, consumer finance, Internet banking, and financial
services through a network of 19 branch offices located in Middlesex, Monmouth,
Morris, and Union counties New Jersey.
Forward-Looking Statements
This press release contains forward-looking statements, which are not historical
facts and pertain to future operating results. These forward-looking statements
are within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, statements
about our plans, objectives, expectations, and intentions and other statements
contained in this press release that are not historical facts.
When used in this press release, the words "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," or words of similar meaning, or
future or conditional verbs, such as "will," "would," "should," "could," or
"may" are generally intended to identify forward-looking statements. These
forward-looking statements are inherently subject to significant business,
economic, and competitive uncertainties and contingencies, many of which are
beyond our control. In addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change. Actual results may differ materially from the results
discussed in these forward-looking statements. We do not undertake to update any
forward-looking statement that may be made by the Company from time to time.
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SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2005 2004
(unaudited) (audited)
----------- ---------
Assets:
Cash and amounts due from banks $ 4,097 $ 4,687
Interest-bearing deposits with banks 2,286 1,759
--------- ---------
Cash and cash equivalents 6,383 6,446
Investment securities available-for-sale,
at fair value 126,290 134,360
Investment securities held-to-maturity (fair
value of $116,586 and $111,154, respectively) 117,573 110,584
Federal Home Loan Bank of New York
stock, at cost 11,250 10,771
Loans receivable, net 596,886 561,687
Accrued interest receivable 2,991 2,751
Property and equipment, net 17,261 16,814
Cash surrender value of bank-owned life insurance 12,760 12,637
Other assets 4,856 4,627
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Total assets $ 896,250 $ 860,677
========= =========
Liabilities:
Deposits $ 566,882 $ 538,916
Federal Home Loan Bank advances 220,570 212,414
Advance payments by borrowers
for taxes and insurance 1,840 1,702
Accrued interest payable on advances 412 385
Dividend payable 498 498
Other liabilities 3,232 2,720
--------- ---------
Total liabilities 793,434 756,635
--------- ---------
Commitments and contingencies - -
Stockholders' equity:
Preferred stock; $.10 par value, 5,000,000 shares
authorized; issued and outstanding - none - -
Common stock; $.10 par value, 20,000,000 shares
authorized; issued March 31, 2005 - 12,452,011,
December 31, 2004 - 12,452,011 1,245 1,245
Additional paid-in-capital 86,321 86,177
Retained earnings 31,210 30,603
Unearned ESOP shares (5,792) (5,962)
Unearned RSP compensation (3,189) (3,391)
Treasury stock acquired for the RSP (5,109) (4,343)
Treasury stock, at cost; 66,749 and -0- shares at
March 31, 2005 and December 31, 2004, respectively (804) -
Accumulated other comprehensive
income (loss), net of taxes (1,066) (287)
--------- ---------
Total stockholders' equity 102,816 104,042
--------- ---------
Total liabilities and stockholders' equity $ 896,250 $ 860,677
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SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
For the Three Months
Ended March 31,
-------------------------
2005 2004
(unaudited) (unaudited)
----------- -----------
Interest income:
Loans, including fees $ 8,174 $ 6,700
Investment securities 2,270 1,510
Other 91 22
----------- -----------
Total interest income 10,535 8,232
----------- -----------
Interest expense:
Deposits 2,720 2,095
Borrowed funds 1,793 476
----------- -----------
Total interest expense 4,513 2,571
----------- -----------
Net interest income before provision for loan losses 6,022 5,661
----------- -----------
Provision for loan losses 445 368
----------- -----------
Net interest income after provision for loan losses 5,577 5,293
----------- -----------
Other income:
Service charges and other fees on deposit accounts 509 484
Net gain on sale of loans - -
Net gain on sale of investments - -
Commissions 248 15
Other 208 189
----------- -----------
Total other income 965 688
----------- -----------
Other expenses:
Salaries and employee benefits 2,643 2,255
Premises and equipment 872 981
Occupancy 524 473
Professional services 195 128
Advertising 207 176
Other operating 282 299
----------- -----------
Total other expenses 4,723 4,312
----------- -----------
Income before income tax expense 1,819 1,669
----------- -----------
Income tax expense 699 664
----------- -----------
Net income $ 1,120 $ 1,005
=========== ===========
Per share of common stock:
Basic earnings per share $ 0.10 $ 0.10
Diluted earnings per share $ 0.10 $ 0.10
Basic weighted average shares outstanding 11,231,081 10,086,963
Diluted weighted average shares outstanding 11,679,829 10,312,989
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